One of the world’s most respected Apple Inc. analysts has just issued a pessimistic report about the iPhone 7, which could affect Apple’s sales figures in 2016. KGI Securities analyst Ming-Chi Kuo said in a research note (via 9to5Mac) to investors that the iPhone will not have “many attractive selling points.” It will merely be a “replacement device” for iPhone 6 users.

Why iPhone 7 Could Hugely Disappoint Apple Inc. Investors?

iPhone sales to miss analysts’ projections

Since the smartphone will not be sufficiently attractive for users, Kuo believes the iPhone sales would decline even in the best case scenario. In the worst case scenario, the iPhone shipments in 2016 could fall 18.1% YoY to 190 million units, even lower than 193 million units sold in 2014. In the best case scenario, the sales would decline only 11.6% to 205 million units. Both figures are lower than analysts’ average projections of 210 million to 230 million units.

Even though the analyst revised his iPhone SE shipment estimate from 12 million to 18 million units, it might not be enough to offset the declines. Apple will be the only company in the list of top five smartphone makers to witness a YoY sales fall. Samsung’s shipments are expected to grow 1%, while Huawei, Oppo and Vivo are estimated to see 15.1%, 51.1%, and 45.5% sales growth in 2016.

iPhone 7 to retain the design of iPhone 6S

The analyst said the iPhone 7 needs to pack more innovative features to enhance user experience. But it is likely to lack may attractive selling points. Ming-Chi Kuo also blamed weak demand for large-screen handset replacements for the expected decline. The iPhone 7’s design will be similar to that of the iPhone 6S, but it is said to be slightly thinner. The phone is rumored to get rid of the 3.5mm headphone jack, the protruding rear camera, and the antenna bands.

However, Kuo is confident that the Cupertino company will regain its mojo in 2017. The tech giant has already placed an order with Samsung for the supply of 100 million OLED displays starting 2017. The analyst believes that the next year’s iPhone will see a revamp so major that Apple will skip the “S” moniker and name it iPhone 8. It is said to bring major form factor changes including OLED displays, removal of the home button, and wireless charging.

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